This second course in the specialization will last six weeks and will focus on the second main building block of financial analysis and valuation: risk. The notion of risk and statistics are intimately related and we will spend a fair amount of time on the development of some statistical concepts and tools, namely distribution theory and regression analysis. This time will be well spent because these concepts and tools are also commonly used in many applications in the real world. The foundational idea of diversification will then be used to develop a framework for evaluating risk and establishing a relationship between risk and return. Apart from developing a keen appreciation of risk for making thoughtful decisions in an institutional context, this course will contain a lot of material and examples that will enable the learner to make smart personal investing decisions. The course will again have time included for assimilation and two final exams.
This course is the second in a sequence of four courses that comprise a Specialization on Valuation & Investing.

À partir de la leçon

Module 4

In this module, we will introduce one of the most widely known models called CAPM (Capital Asset Pricing Model), which provides a simple and powerful relation between risk and return.